Posted at 11.24.2018
Read the fastened case study and answer the following questions. An excellent answer will in every cases demonstrate a knowledge of the basic theory which underpins the research of organisations and their Information Systems. It will demonstrate a knowledge of the different system and become able
to relate this in a useful way to provide information which management decisions can be based mostly. It'll use the
case study example to illustrate the response but will also show intensive evidence of additional research and reading.
An satisfactory answer will illustrate the application of the underpinning theory and a more limited ability to apply this
to Information Systems problems. It will relate this to the research study example and show evidence of additional research
A faltering answer will neglect to apply any theory to the issues mentioned and, for example, consist purely of comprehension
of the case study material.
Q1. Will you agree with Yahoo and Microsoft that eBay is now vulnerable to their assaults via Google Base and
Windows Live Expo? Why or you will want to?
Q2 What exactly are the major advantages and constraints of Google Foundation and Glass windows Live Expo? Which do you prefer or
would you use both? Why? Head to their Internet websites and read reviews at other sites to help you answer.
Q3. Are eBay's development of Kijiji, acquisition of Skype, alliance with Yahoo, and other acquisitions as observed in this
case enough to defend against the competitive assaults of Yahoo and Microsoft? Defend your position.
3:00 PM on Thursday night 9 Dec 2010
eBay versus Yahoo and Microsoft:
The Competitive Fight for e-
or almost all of its presence, eBay has liked a virtual
monopoly. It now orders more than 90 percent of
the online auction market, and from 1999 to 2004, it
posted at least 40 percent total annual profit growth every year,
even as brawny competitors like Amazon and Yahoo were
taking goes at its main business. Yet for many its phenomenal
success, in 2006 eBay started out to face the toughest challenges
of its 10-yr background. The armies massing on its edges hail
from Google and Microsoft, but rather than shoot for eBay's
auction business, both behemoths want to make use of their
strength browsing and advertising to build dominance in
online classifieds-the format that many experts think will
define the future of e-commerce.
"Ebay auctions remain too hard for many consumers
to navigate, " says Safa Rashtchy, mature analyst covering
e-commerce and search at Piper Jaffray. "Overall, people
prefer to buy locally, but there hasn't been an efficient way
for them to find one another. "
Fans of the populist Web site Craigslist, in which eBay
owns a twenty five percent stake, might disagree. With dedicated
sites in many metropolitan areas across the world, Craigslist is an online
classifieds reaching place for thousands and thousands of people looking to
share ideas, meet a friend, find employment, or locate an apartment.
Meg Whitman, CEO of eBay notes, "Craigslist is an
excellent example of how the Internet brings people together
to trade goods, help neighbours, or speak out on
important issues. Craigslist has become the online
gathering place for local areas. " But Craigslist
doesn't have an online repayment system-it doesn't use
eBay's PayPal-or an industrial-strength shopping search
engine that may help it increase into a major global player.
Not to say that founder Craig Newmark and CEO Jim
Buckmaster seem in no be quick to expand prematurely on that
Two of the very most formidable companies on the planet,
however, are in more of your rush. Google and Microsoft certainly
have the resources; some say the invasion into eBay's
turf started when Louis Monier, ex - director of advanced
technology at eBay and the wizard behind its search improvements,
was poached by Google last summer time. The challengers
also have a motive: The burgeoning online classifieds business
is growing at a way faster clip than auctions.
Microsoft launched its entries service, Glass windows Live
Expo, in February 2006 as yet another of its Glass windows Live
initiatives. Users have the ability to post classifieds free of charge, limit access
by friend lists, and focus listings geographically; a tie-in
to MSN's Virtual Earth mapping service helps clients and
sellers find one another easily. Says Gary Wiseman, product
unit administrator, "What sets Windows Live Expo apart is that
people can placed their own search variables for goods and
services. They can identify their own industry universe. "
Most categorised advertising services generalize product
location by way of a predefined city location, no matter where in
the city the product is located. However, all products and
services posted in Home windows Live Expo are geographically
identified, or geo-tagged, by zip code, not city, which specifically
defines where in fact the product is situated. Windows Live
Expo customers likewise have the option to search for items
within a radius as small as 25 a long way or as large as the entire
United States, so that it is easier to explain a search. Windows
Live Expo entries are also integrated with MSN's satelliteimage-
based Home windows Live Local so customers can view
maps and aerial imagery of neighbourhoods they may want
to live in or see exactly where this weekend's garage sale is.
Google's foray, called Yahoo Base, went stay in mid-
November 2005, a robust foundation which Google
could build a variety of products that contend with eBay.
A large, searchable database, the free service allows users
to post from formulas and concert dates to used
cars and job entries, and local stores can upload inventory
listings. Users have the ability to post classifieds data so buyers
can see what's on the racks in the bricks-and-mortar stores
in their neighbourhoods. With eBay acquiring nearly half of
its new clients and sellers in the United States through paid
listings, generally on Yahoo and google, it might lose customers if
Google puts its search results first.
Google Platform users can submit all types of online and
offline content, which becomes searchable on Yahoo. Users
can describe any item with attributes, which can only help people
find it when they certainly related searches. Based on an item's relevance,
users may find their results for queries on Froogle,
Google Maps, or the key Google search engine. The more
popular individual attributes become, the more often Google
suggests them when others post the same items.
"People could bypass eBay totally, " statements Scot
Wingo, CEO of Channel Consultant, which helps big eBay sellers
like Best Buy maximize online sales. One of Wingo's clients,
online shoe store Grapevinehill, recently started out listing its
inventory on Google Base in addition to eBay. Owner Mark
Fitzgerald says he made the proceed to reach Google's broader
audience and that the new entries are already driving traffic to
his store: "We definitely see some momentum building. "
eBay isn't blind to this switch in e-commerce. Its recent
acquisitions and launches-comparison site Shopping. com
and international online classifieds sites Kijiji, Gumtree, and
LoQUo-lend themselves to the web entries business.
Kijiji, which means "community" in Swahili, and others provide
international online classifieds Sites that provide a
place for individuals in many towns in Asia, European countries, the United
Kingdom, Australia, Canada, New Zealand, and South Africa
to meet via personals, share ideas, buy or trade goods and services,
find accommodations, or show information on property,
real estate, jobs, and other topics.
Then in Sept 2005, eBay received Luxembourgbased
Skype Technology SA, the global Internet communications
company, for about $2. 6 billion in upfront
cash and eBay stock. eBay claimed that that Skype, eBay, and
PayPal create an unequalled e-commerce and communications
engine for potential buyers and sellers throughout the world.
eBay defended the huge high quality it payed for Skype (the
Economist observed that Skype possessed yet to produce a dime's value of
profit) by emphasizing that online shopping will depend on a
number of factors to function well and this communications,
like repayments and shipping, is a crucial part of the process.
Skype will streamline and improve communications between
buyers and retailers as it is built-into the eBay marketplace,
argues eBay. Customers will gain a simple way to talk to
sellers quickly and get the info they have to buy, and
sellers can easier build romantic relationships with customers
and close sales. As a result, eBay hope that Skype (which
then experienced 54 million associates in 225 countries, was adding
about 150, 000 users every day, and was the market leader in
nearly all countries it can business) will increase the velocity
of trade on eBay, especially in categories that require
more involved communications such as used autos, business
and industrial equipment, and high-end collectibles.
eBay CEO Meg Whitman struck again in mid-
2006 with an alliance of types with Yahoo, that may sell ads
for eBay's sites and promote eBay's PayPal repayment service
as a means for consumers to pay for Yahoo services. That undoubtedly
led to a delight deal with Google later that calendar year,
in which Yahoo decided to promote Skype calls on its Web
site, while eBay will allow Google to put advertisings on eBay's Web
sites in market segments outside the United States.
Actually, say some analysts, eBay's best defense
could grow to be its PayPal fraud and payment staff-
more than 1, 000 employees-which Yahoo and Microsoft
have yet to complement. "It's an enormous advantages, " says analyst David
Edwards of American Technology Research. "People overlook
how complicated eBay's business is. "